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Solar power tariff has dropped to a record low of Rs 2.62 per unit in the auction conducted for Bhadla solar park.

The price is even lower than NTPCBSE 0.62 %’s average coal-based power tariff of Rs 3.20 per unit.

“Bhadla Ph-IV Solar Park results in a historic lowering of tariffs. Phelan Energy (50MW) and Avaada Power (100 MW) have bagged projects at Rs 2.62/unit. Softbank Cleantech has won 100 MW capacity at Rs 2.63/unit,” a senior official said.

Last month, the levelised solar power tariff had dropped to all-time low of Rs 3.15 per unit in an auction of a 250 MW project at Kadapa in Andhra Pradesh.

Earlier in February, the lower capital expenditure and cheaper credit had pulled down solar tariff to a new low of Rs 2.97 per unit for the first year in an auction conducted for 750 MW capacity in Rewa Solar Park in Madhya Pradesh.

However, the levelised tariff for Rewa project has worked out to be Rs 3.30 per unit.

In January last year, solar power tariff had dropped to a new low, with Finnish energy firm Fortum Finnsurya Energy quoting Rs 4.34 a unit to bag the mandate to set up a 70-MW solar plant under NTPC’s Bhadla Solar Park tender.

In November 2015, the tariff had touched Rs 4.63 per unit following aggressive bidding by US-based SunEdison, the world’s biggest developer of renewable energy power plants.